Derivatives and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2011

Derivatives and Hedging Activities (Tables) [Abstract]

Fair values, Volume of activity and gain/loss information related to derivative instruments

	2011								2010
			Fair Value								Fair Value
December 31, in millions	Notional Amount		Derivative Assets			Derivative Liabilities			Notional Amount		Derivative Assets			Derivative Liabilities
Derivatives designated as hedging instruments:
Interest rate	$	15,067	$	589		$	27		$	10,586	$	458		$	17
Foreign exchange		554		—			147			1,093		—			240
Total		15,621		589			174			11,679		458			257
Derivatives not designated as hedging instruments:
Interest rate		48,537		1,364			1,371			48,344		1,308			1,319
Foreign exchange		5,549		151			141			5,946		180			164
Energy and commodity		1,610		253			253			1,827		318			335
Credit		3,210		37			62			3,375		39			31
Equity		17		3			3			20		1			1
Total		58,923		1,808			1,830			59,512		1,846			1,850
Netting adjustments (a)		—		(1,452	)		(978	)		—		(1,298	)		(965	)
Total derivatives	$	74,544	$	945		$	1,026		$	71,191	$	1,006		$	1,142

Pre-tax net gains (losses) on fair value hedges

	Year ended December 31, 2011
in millions	Income Statement Location of Net Gains (Losses) on Derivative	Net Gains (Losses) on Derivative		Hedged Item	Income Statement Location of Net Gains (Losses) on Hedged Item	Net Gains (Losses) on Hedged Item
Interest rate	Other income	$	163	Long-term debt	Other income	$	(158)	(a)
Interest rate	Interest expense – Long-term debt		220
Foreign exchange	Other income		(46)	Long-term debt	Other income		39	(a)
Foreign exchange	Interest expense – Long-term debt		12	Long-term debt	Interest expense – Long-term debt		(16)	(b)
Total		$	349			$	(135)
	Year ended December 31, 2010
in millions	Income Statement Location of Net Gains (Losses) on Derivative	Net Gains (Losses) on Derivative		Hedged Item	Income Statement Location of Net Gains (Losses) on Hedged Item	Net Gains (Losses) on Hedged Item
Interest rate	Other income	$	90	Long-term debt	Other income	$	(88)	(a)
Interest rate	Interest expense – Long-term debt		213
Foreign exchange	Other income		(134)	Long-term debt	Other income		124	(a)
Foreign exchange	Interest expense – Long-term debt		7	Long-term debt	Interest expense – Long-term debt		(14)	(b)
Total		$	176			$	22

(a) Net gains (losses) on hedged items represent the change in fair value caused by fluctuations in interest rates.

(b) Net gains (losses) on hedged items represent the change in fair value caused by fluctuations in foreign currency exchange rates.

Pre-tax net gains (losses) on cash value hedges

	Year ended December 31, 2011
in millions	Net Gains (Losses) Recognized in OCI (Effective Portion)			Income Statement Location of Net Gains (Losses) Reclassified From OCI Into Income (Effective Portion)	Net Gains (Losses) Reclassified From OCI Into Income (Effective Portion)			Income Statement Location of Net Gains (Losses) Recognized in Income (Ineffective Portion)		Net Gains (Losses) Recognized in Income (Ineffective Portion)
Interest rate	$	72		Interest income – Loans	$	51			Other income		—
Interest rate		(46	)	Interest expense – Long-term debt		(10	)		Other income		—
Interest rate		—		Net gains (losses) from loan sales		—			Other income		—
Total	$	26			$	41					—

	Year ended December 31, 2010
in millions	Net Gains (Losses) Recognized in OCI (Effective Portion)			Income Statement Location of Net Gains (Losses) Reclassified From OCI Into Income (Effective Portion)	Net Gains (Losses) Reclassified From OCI Into Income (Effective Portion)			Income Statement Location of Net Gains (Losses) Recognized in Income (Ineffective Portion)		Net Gains (Losses) Recognized in Income (Ineffective Portion)
Interest rate	$	42		Interest income – Loans	$	209			Other income		—
Interest rate		(18	)	Interest expense – Long-term debt		(16	)		Other income		—
Interest rate		—		Net gains (losses) from loan sales		—			Other income		—
Total	$	24			$	193					—

After-tax change in AOCI resulting from cash flow hedges

in millions	December 31, 2010		2011 Hedging Activity		Reclassification of Gains to Net Income		December 31, 2011
AOCI resulting from cash flow hedges	$	8	$	16	$	(26)	$	(2)

Pre-tax net gains (losses) on derivatives not designated as hedging instruments

Year ended December 31, in millions	2011			2010
NET GAINS (LOSSES) (a)
Interest rate	$	19		$	16
Foreign exchange		42			44
Energy and commodity		4			5
Credit		(45	)		(22	)
Total net gains (losses)	$	20		$	43

(a) Recorded in “investment banking and capital markets income (loss)” on the income statement.

Largest exposure to an individual counterparty

December 31, in millions	2011		2010
Largest gross exposure (derivative asset) to an individual counterparty	$	194	$	168
Collateral posted by this counterparty		64		25
Derivative liability with this counterparty		250		275
Collateral pledged to this counterparty		127		141
Net exposure after netting adjustments and collateral		7		9

Fair value of derivative assets by type

December 31, in millions	2011		2010
Interest rate	$	1,257	$	1,134
Foreign exchange		64		104
Energy and commodity		96		84
Credit		12		14
Equity		2		1
Derivative assets before collateral		1,431		1,337
Less: Related collateral		486		331
Total derivative assets	$	945	$	1,006

Fair value of credit derivatives purchased and sold

December 31, in millions	2011						2010
	Purchased		Sold		Net		Purchased		Sold		Net
Single name credit default swaps	$	3	$	(1)	$	2	$	(8)	$	9	$	1
Traded credit default swap indices		6		(6)		—		—		2		2
Other		1		(1)		—		5		—		5
Total credit derivatives	$	10	$	(8)	$	2	$	(3)	$	11	$	8

Credit derivatives sold and held

	2011							2010
December 31, dollars in millions	Notional Amount		Average Term (Years)		Payment / Performance Risk			Notional Amount		Average Term (Years)		Payment / Performance Risk
Single name credit default swaps	$	878		2.18		4.98	%	$	942		2.42		3.93	%
Traded credit default swap indices		343		3.20		4.58			369		3.86		6.68
Other		18		5.74		10.89			48		2.00		Low	(a)
Total credit derivatives sold	$	1,239		—		—		$	1,359		—		—

(a) The other credit derivatives were not referenced to an entity’s debt obligation. We determined the payment/performance risk based on the probability that we could be required to pay the maximum amount under the credit derivatives. We have determined that the payment/performance risk associated with the other credit derivatives was low (i.e., less than or equal to 30% probability of payment).

Credit risk contingent feature

December 31, in millions	2011				2010
	Moody’s		S&P		Moody’s		S&P
KeyBank’s long-term senior
unsecured credit ratings		A3		A-		A3		A-
One rating downgrade	$	11	$	11	$	16	$	16
Two rating downgrades		16		16		27		27
Three rating downgrades		16		16		32		32